- The Ether has hit a new all-time high as the second-largest crypto continues to gather momentum
- The Ether now trades on the Chicago Mercantile Exchange CME, shortly after which it hit a new ATH
- Ethereum has defied all odds and looks set to continue its upward movement
The second-largest crypto, Ethereum, has set new all-time high following days of gathering momentum. The Ether (ETH) today reached a new height after it launched on the Chicago Mercantile Exchange.
Reason for The Momentum
The price of the Ether (ETH) , the native crypto of Ethereum, has hit a record-high on CME launching dedicated futures. ETH rallied to as high as $1,830 just hours after it started to trade on CME.
Similar Yet So Different
The timing of the Ether’s rally to a new record-high is similar to an event involving Bitcoin. In December 2017, the CME listed the Bitcoin futures contract for the first time. Within weeks of reaching a new high, the price of Bitcoin slumped from $20,000 to $6,000.
Many traders and analysts followed the same pattern to be repeated by Ether after its futures went live. However, that may not be the case. However, there is no way to judge that the CME Bitcoin futures listing was the catalyst that resulted in Bitcoin’s plummet in the weeks that followed.
On February 8, ETH went live under the ticker ETH1, opening at $1669.75, with over 20 contracts traded within the first eight minutes of trading. By the end of the trading day, it registered 388 contracts, which accounts for 19,400 ETH, or $33 million as at the price on February 8.
On the Flipside
- Ripple’s has lost its place as the 4th largest Cryptocurrency by market cap
- After a spike in the price of Cardano (ADA), the coin overtook Ripple’s XRP which has suffered from the SEC lawsuit
- Cardano currently trades at $0.68 with a market cap of $21.4 billion which makes it the 4th largest crypto
Institutional Interest In Ethereum
Of all the Cryptos, Bitcoin has enjoyed the most share of institutional investment. With the likes of Grayscale, Massmutual, MicroStrategy, Fidelity Investments, Ruffer Investment, and Guggenheim Partners LLC backing Bitcoin.
Unlike Bitcoin in 2017, Ethereum in 2021 has seen an unprecedented institutional demand for Ether and other cryptos. As recently reported, electric car manufacturers Tesla purchased $1.5 billion worth of Bitcoin, which is nearly 10% of its cash holdings.
Ryan Seans Adams, an Ethereum investor and researcher, said:
ETH futures go live on the CME today This is huge. This is a bridge to institutions. This is a green light from U.S regulators. ETH is becoming globally accepted commodity money.
What to Expect in the Coming Days?
While Ethereum currently trades above $1,800, crypto researchers and analysts believe that its CME listing will act as a catalyst for the price of the Ether. The research team at CoinMetrics noted that CME’s ETH futures launch could accelerate inflows of ETH into the Grayscale Ethereum Trust (ETHE).
If the institutional interest for Ethereum rises as a result and Grayscale inflows spike, we could be looking at both a short-term and long-term upward price movement for the Ether.